Veggy Hut Plc is a company growing and selling organic vegetables, herbs

and

edible plants. The company has operated since 2017 and trades with supermarkets

as well as individual customers.

The company trades with individual customers by

cash and offers trading on credit terms to businesses.

The company provides you with the f

ollowing

information and

balances:

During 2019, the following occurred:

1.

The company paid total dividends of $1,580.

2.

1,600 new shares were issued with the price of $3 per share.

3.

Income tax of $375 was paid.

4.

New equipment was purchased for $5,000 cash.

5.

A

property was sold for $205.

6.

Depreciation expense for the year 2019 was $1,895.

7.

Interest paid during 2019 was $870.

Veggy Hut Plc

Income Statement for the year ended 31 December 201

9

$

Operating profit

1725

Expenses

770

Profit before tax

955

Taxable income

425

Profit for the year

530